Reply #7: It provides liquidity

[Dreamer Tatum]

Without the feds stepping in, there was a real fear of a run on banks, which means that (a) there would be
no money to lend, regardless of credit quality, and (b) there would have been a substantial crash that would
have been felt in the very near future - massive job loss, credit constriction, deflation, and a few other
unpleasantries.

If you actually *think* about it, the government would have had to have stepped in no matter what. If there
was a complete meltdown, the only way to prevent a new Depression would be for Uncle Sam to provide liquidity
to the barren financial markets.

At least now there is the possibility that people and business can continue to borrow, albeit at tighter terms
than before.